Legislators criticize spending at agency overseeing medical marijuana

State legislators Wednesday sharply criticized the state agency overseeing Colorado's medical-marijuana industry for spending on patio furniture, $1,000 office chairs and a vehicle fleet it didn't need, all at a time it was struggling to fulfill its enforcement duties.

Officials with the Department of Revenue and its Medical Marijuana Enforcement Division acknowledged errors and cited steps it has taken, including stricter oversight and new leadership.

At a hearing Wednesday, the state Legislative Audit Committee completed its review of a state audit of the division by zeroing in on expenses auditors found to be unreasonable and inappropriate.

Auditors questioned the division for spending about $250,000 on furniture in fiscal year 2011, including $28,000 for seven desk extenders, $16,000 for three cubicles and $4,200 for four office chairs.

The division bought the furniture without a competitive bidding process from Colorado Correctional Industries, a division of the Department of Corrections that puts criminal offenders to work through 60 programs — including manufacturing furniture.

Revenue officials cited a state statute requiring agencies to purchase some items from the corrections division. But auditors found more affordable furniture available online, and pointed out agencies can get waivers to put purchases out to bid.

The director of Colorado Correctional Industries did not respond to a request for comment.

Laura Harris, director of the enforcement division, said $1,800 worth of patio furniture bought for a break room was "pretty unreasonable."

Auditors also criticized the division for leasing 33 vehicles — including 21 sport utility vehicles — it couldn't justify. The fleet was downsized.

Then-division director Dan Hartman was reassigned to another division of the Department of Revenue in November 2011 and replaced by Harris, who had been director of tobacco and liquor enforcement.

Barbara Brohl, the executive director of the revenue department since July 2011, said Wednesday she wanted "new eyes." She said the division reviewed all operations and curbed spending after the change.

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